Summarised by Centrist
Once hailed as champions of social justice, Corporate America’s enthusiasm for activism is dwindling. With rising interest rates and right-wing backlash, major brands are retreating from bold stances on social issues, revealing a cold truth: it was always about capitalism.
In the late 2010s, Corporate America embraced “stakeholder capitalism,” prioritising social issues alongside profits. Companies like BlackRock and members of the Business Roundtable advocated for businesses to contribute positively to society.
This shift gained momentum following the Black Lives Matter protests following the death of George Floyd, pushing firms towards diversity, equity, and inclusion (DEI) initiatives.
However, by 2024, a pendulum swing has become evident.
High-profile incidents, such as Disney’s clash with Florida Governor Ron DeSantis over the “Don’t Say Gay” bill and Bud Light’s partnership with transgender influencer Dylan Mulvaney, kicked off a right-wing backlash.
The resulting controversies highlighted the fragility of corporate activism in the face of conservative opposition.
Economic pressures, including higher interest rates and reduced consumer spending, compounded the issue.
Companies reverted to prioritising profits over social change, retreating from their activist positions. While corporate activism made headlines, its impact may be fleeting.
