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Wednesday 6th December 2023

In today’s world, woke capitalism is capitalism

Big brands have come under fire for ‘wokeness’ but are they just moving with the times? Despite ruffling feathers, many have discovered that going woke doesn't mean going broke…

It was a summer of discontent with the ‘woke brigade’. Allegations of ‘woke bank’ were levelled against NatWest as CEO Dame Alison Rose departed for reasons arguably down to other factors. Calls to boycott Costa Coffee arose over their mural of a post-op trans man for pride month. As the ‘woke minefield’ grows, it raises important questions about what it involves and the implications for communicators. 

Like the term ESG, the word ‘woke’ is deeply misunderstood. With its roots in African American Vernacular English, it describes the state of being awake or aware of injustice and discrimination. Wokeness is entrenched in the culture wars, which are defined by conflicting opinions on issues, values, ideologies and identity. It has become shorthand for a derogatory insult to describe morally and socially responsible people, mostly of leftist political leanings. 

It is also a complex, sensitive and divisive topic. The finger of blame can quickly point at wokeness for errors in judgement and lack of common sense. However, having a more finely attuned moral and social compass is very much part of a purpose and impact-led world. Global movements like MeToo, Black Lives Matter and Stop Asian Hate have exposed systemic and structural imbalances in power and equity and shone a spotlight on the rights on underrepresented, minoritised and marginalised groups. 

Quiet quitting

People are taking a stand, and they want the brands and businesses they support, and their employers, to do the same. In fact, they are quitting or considering it if their employers’ values don’t align with their own, according to research from former Unilever CEO Paul Polman last year. The rise of ‘conscious quitting’ is more acutely felt by millennials and Gen Z – 'the workforce of the future – who also happen to be the big spenders of tomorrow. 

Queue the growth of woke capitalism'. A term coined by New York Times columnist Ross Douthat in 2015 to describe companies supporting progressive causes to maintain their influence in society. The concept of business as a force for good has, of course, existed long before this. Just ask Patagonia, the pinnacle of social and environmental sustainability, Ben & Jerry’s or Tony's Chocolonely. 

In today’s world, woke capitalism is capitalism. It encapsulates business continuity strategy. Disney is a case in point. While it has come under fire for wokeness, the company is trying to reflect a changing audience demographic and world. Entertainment embraces multiculturalism and little girls don’t want to be rescued by princes. Inevitably, it will alienate some of its audience as it moves with the times.

A move with the times

If going woke really did mean going broke, it certainly hasn’t been the experience of Warner Bros and Mattel with the success of the Barbie Movie. Barbie a feminist icon? Ken a poster child for male fragility? Who would have thunk? As of August 2023, the movie had grossed $US1bn in box office sales, against a marketing spend of some $US 150m and a similar cost for the movie. The ‘woke backlash’ against it tanked.

For communicators and marketers, going woke offers an opportunity to demonstrate a move with the times, highlight cultural relevance and be part of the zeitgeist. But it isn’t always rose tinted or peachy. 

Perhaps the most infamous of cases is the Bud Light brand partnership with transgender influencer Dylan Mulvaney, which cost parent company AB InBev about $US395m in lost US sales. While the backlash came from the brand’s core of right-wing supporters, the LGBTQIA+ community were also critical of the brand’s response and treatment of Mulvaney. In August this year, the Costa Coffee mural ruffled anti-woke and women’s rights campaigners. It also raised questions about whether it was exposing trans people to more hate in daily life. 

The answers aren’t straightforward and it’s a tricky balance to strike. There is also truth in that age old adage: if you don’t keep up with a changing world, you get left behind. While going woke doesn’t necessarily mean going broke, it does require a nuanced, thoughtful and considered approach. Here are some key considerations and watchouts: 

Perspective

Take a moment to pause and reflect on what might be categorised as “woke issues”. Do people care enough? Research from King's College London last year showed that the media has a disproportionate focus on culture war issues, and while understanding is growing in the public, it is far from being top of mind for people.  

Credibility

Is it credible to wade into publicly supporting and championing an issue? And can you explain your rationale: but why? Costa Coffee, for example, has been a long and proud supporter of the LGBTQIA+ community. Campaigns can land badly or flat if the motivation isn’t clear. A standout example is the M&M character rebrand to ‘spokescandies’ that one no one asked for or indeed cared about.  

Audience

What do your customers want/value? The Barbie movie connected with the core movie audience of anyone who used to play with the doll and that’s most women and their teenage daughters. One of the key reasons behind the Bud Light fiasco is that they failed to consider their core audience and how they would react. If your core audience is not quite aligned with your values and thinking yet, evolution might be better than revolution.

Insight gathering and immersion

If you truly want to play a part in addressing injustice and discrimination, you need to be immersed and engaged in the many, conflicting aspects and evolving ideas, language and labels and understand intersectionality. Are you staying abreast of the latest developments and plugged into relevant communities? This is even more important if there is no lived experience, ie first hand / direct experience, on the team.

Authenticity/brand positioning

What is it now and where do you want it to go? Woke washing and diversity dishonesty quickly unravel with digital activism. Beauty companies who were quick to post black squares in support of BLM, were exposed for not catering for people of colour in their makeup ranges or being diverse and inclusive with models in their marketing campaigns. Marketing and communications campaigns need to be supported by follow through with credible and authentic positioning and wider organisational strategy.

Risk/benefit analysis

Might a well-meaning campaign do more harm than good? The Home Office reported a 56 per cent increase on anti-trans hate crimes year-on-year in 2022, linking them to discussions about transgender issues on social media. Members of the community have wondered whether it might be better supporting them more discreetly, ie, with funding and strategic partnerships. 

Cultural appropriation vs appreciation

In a bid to be relevant or representative, are you trampling over what people hold dear? The word appropriation has negative connotations. It implies stealing, snatching and taking by force. With appreciation, there is platforming, championing and monetising involved. Due consideration and respect needs to be shown for history, heritage and important cultural artefacts like art, fashion, literature and food.   

Diversity of thought

The communications and marketing industry is not the most diverse and inclusive, with ongoing challenges with social, gender and ethnic diversity. In creating campaigns, have the right people, communities and stakeholders been consulted and have they been accurately represented? Did they feel empowered to challenge the status quo? People from underrepresented, marginalised and minoritised communities often don’t.

Issues management

This is arguably even more important in a woke world. Bud Light’s motivation was to help a brand in decline reach a younger demographic. But much has been written about its response to the fiasco that followed – textbook what not to do in a crisis. It has also further fuelled cancel culture coining the term 'Bud Light treatment’ in the US, a glimpse of which can be seen in the calls to boycott Costa in the UK. Risk preparedness and mitigation strategies need to incorporate human cost, as much as impact on reputation and the bottom line. 

Communicating in a woke world is less about lighting and fighting fires in a culture war. It is more about demonstrating evolution and alignment with a world that cares. This involves being culturally relevant and culturally sensitive – attuned to the shifts occurring around us, while also being thoughtful, nuanced and respectful of communities and cultures. Far from going broke, done properly and well it can fulfil and enrich us all. 

Mallika Basu is communications consultant and culture and DEI advisor at Blurred where this post was first published.