The High-Water Mark of Woke Corporate Activism

In July of 1863 at the battle of Gettysburg, Confederate forces reached their high-water mark during Pickett’s charge. While no one knew it as a high-water mark at the time, that point marked the beginning of the end for the Southern cause. While singular events are viewed in the context of the moment, a high-water mark is a mystery of timing. It can only be discovered retrospectively as subsequent events unfold. Given recent developments in corporate America, it is now apparent that woke corporate activism has had its high-water mark.

In April 2023, at the start of the NCAA basketball March Madness, marketing executives from the Bud Light brand decided that the best way to communicate the attributes of their product to their target audience of mostly young, blue-collar males was to promote a sponsorship with transgender influencer and activist Dylan Mulvaney. By disregarding their target consumer and following the well-worn path of woke corporate activism, the Bud Light brand lost customers, market share, and revenue.

While no one knew it at the time, Bud Light represented the high-water mark for woke corporate activism. The next 18 months marked the steady decline of woke corporate policies and practices culminating in the world’s largest retailer, Walmart, announcing a halt to its DEI practices.

At first, the backlash to the Bud Light and Mulvaney partnership was thought to be a knee-jerk reaction limited to conservative media. As the weeks unfolded, however, the reaction turned into a protest and the protest turned into a boycott. Before long, Bud Light lost its number one market position and was scrambling to regain its footing with new advertising, price promotions, and a 60-second commercial at the Super Bowl. (READ MORE: Bud Light’s Super Bowl Hail Mary)

Nothing worked.

The brand continued its steady decline. Hot on the heels of Bud Light came a controversy at Target, where the retailer faced significant backlash surrounding the promotion of its Pride Month clothing toward children. Target subsequently removed some of the offensive items from its stores and scaled back Pride Month displays in response to the controversy.

Next came one of the biggest blows to woke corporate activism, a 2023 Supreme Court ruling that effectively ended affirmative action in college admissions. The ruling has since been used against various diversity programs in corporate America. Additional dominoes fell across the corporate landscape as companies like Ford, Boeing, and Harley-Davidson abandoned their DEI initiatives in direct response to customer sentiment, a changing social landscape, and scrutiny by conservative activists. Lastly, Walmart recently announced that the company was abandoning its DEI policies, all but signaling the end of woke corporate activism.

Walmart’s announcement cuts across multiple areas of the company. The term “DEI” has been eliminated from company documents and job titles. Quotas for collaborating with suppliers designated as “diversity partners” have been dropped. The company elected not to renew a multimillion-dollar commitment to the Center for Racial Equity. Walmart will even remove some LGBTQ merchandise from its shelves, will stop providing company data to the Human Rights Campaign, and will reevaluate the company’s participation in Pride Month events.

Walmart’s move is particularly impactful for three reasons. First, as the world’s largest retailer and number one private-sector employer in the United States, Walmart sets an example for others to follow. It is likely that other firms will follow Walmart’s lead. Second, Walmart is aligning its policies with the expectations and values of its customers rather than dictating values to them, learning from the mistakes of Bud Light. Third, Walmart is clearly responding to the changes coming in the wake of the recent presidential election. Companies like Walmart desire to grow and are positioning themselves to take advantage of a freer free market.

After being turned back from its high-water mark at Gettysburg, the Southern Army remained in the field but would never again be in the same position of strength. While woke corporate activism may remain a part of the business landscape in some corners, it will never be in the position of strength it was up until the moment Dylan Mulvaney held up that Bud Light can.

READ MORE from Richard Kocur:

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SEC Just Made Business Riskier With Woke Demands

Bud Light’s Super Bowl Hail Mary

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